Bitcoin Surges to $85K as Short Squeeze Wipes Out $648M
A violent short squeeze pushed Bitcoin to $85,000, liquidating $648 million in bearish positions in a single move.
Bitcoin just reminded bears why fighting the momentum is expensive. The flagship cryptocurrency blasted through $85,000 as a cascading short squeeze forced out $648 million worth of bearish bets in one brutal sweep. If you were short BTC, this one hurt.
Short squeezes like this are self-reinforcing. As prices rise, automated liquidations kick in, which pushes prices even higher, which triggers more liquidations. It's a feedback loop that can move markets faster than most traders can react. That's exactly what played out here — one of the largest single-day liquidation events in recent memory.
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For bulls, this is a momentum signal worth watching. A move that clears out $648 million in short interest doesn't just close bad trades — it resets the positioning landscape. With fewer shorts in the market, there's less overhead resistance from forced selling, which can leave the path higher more open than it was before.
For bears considering a re-entry, this is a warning shot. Trying to short into a squeeze without tight risk management is how accounts go to zero. The market just demonstrated it has the firepower to punish overleveraged positions decisively and fast.
Whether $85,000 becomes a new support level or a blow-off top depends on what demand looks like from here. Watch volume, watch open interest rebuild, and watch how BTC behaves on any near-term pullback. Continue reading at CoinDesk.
